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Governance Issues (governance + issues)
Kinds of Governance Issues Selected AbstractsToward Understanding Islamic Corporate Governance Issues in Islamic FinanceASIAN POLITICS AND POLICY, Issue 1 2010Maria Bhatti This article presents recent developments on legal issues associated with corporate governance in the Islamic finance industry based on a contractual pyramid. It presents the Islamic corporate governance (ICG) model and discusses its viability in a 21st-century corporate structure. The model is based on the institution of Hisba, which demands proper and honest bookkeeping, disclosure, and transparency based on the Shariah principles of Islamic ethics. This article proposes a model of ICG that reconciles the objectives of Shariah law with the stakeholder model of corporate governance. It argues that this may be viable due to the emphasis that Shariah laws place on property and Islamic financial contractual rights. The article also discusses a model of ICG that is consistent with principles outlined by the Organisation for Economic Co-operation and Development as well as Shariah law. Such a model of corporate governance would encourage capital formation, foster strong markets, and encourage judgment and transparency, which are all principles central to Shariah laws. [source] Taking Stock of Corporate Governance Research While Looking to the FutureCORPORATE GOVERNANCE, Issue 3 2009Igor Filatotchev ABSTRACT Manuscript Type: Editorial Research Question/Issue: This essay identifies some key issues for the analysis of corporate governance based on the articles within this special review issue coupled with our own perspectives. Our aim in this issue is to distil some research streams in the field and identify opportunities for future research. Research Findings/Results: We summarize the eight papers included in this special issue and briefly highlight their main contributions to the literature which collectively deal with the role and impact of corporate boards, codes of corporate governance, and the globalization of corporate governance systems. In addition to the new insights offered by these reviews, we attempt to offer our own ideas on where future research needs to be targeted. Theoretical Implications: We highlight a number of research themes where future governance research may prove fruitful. This includes taking a more holistic approach to corporate governance issues and developing an inter-disciplinary perspective by building on agency theory while considering the rich new insights offered by complementary theories, such as behavioral theory, institutional theory and the resource-based views of the firm. In particular, future corporate governance research needs to be conducted in multiple countries, particularly in emerging economies, if we want to move closer to the journal's aim of producing a global theory of corporate governance. Practical Implications: Our analysis suggests that analytic and regulatory approaches to corporate governance issues should move from a "one-size-fits-all" template to taking into account organizational, institutional and national contexts. [source] Redesigning Corporate Governance Structures and Systems for the Twenty First CenturyCORPORATE GOVERNANCE, Issue 3 2001Robert A.G. Monks How a corporation is governed has become in recent years an increasingly important element in how it is valued by the market place. McKinsey & Company in June 2000 published the results of an Investor Opinion Survey of attitudes about the corporate governance of portfolio companies. The survey gathered responses about investment intentions from over 200 institutions who together manage approximately $3.25 trillion in assets. Ranging from 17 per cent in the US and Britain to over 27 per cent in Venezuela, investors placed a specific premium on what was called "Board Governance". To put this into perspective, consider how greatly sales would have to increase, expenses be cut and margins improved to achieve a comparable impact on value. "For purposes of the survey, a well governed company is defined as having a majority of outside directors on the board with no management ties; holding formal evaluations of directors; and being responsive to investor requests for information on governance issues. In addition, directors hold significant stockholdings in the company, and a large proportion of directors' pay is in the form of stock options." This correlation of governance with market value by one of the most respected consulting companies in the world creates the foundations of a new language for management accountability. McKinsey has great credibility as a value-adding advisor to corporate managements. Governance is not a cause or a theology for McKinsey; it is an important element in the value of an enterprise. By getting the opinion of what we call Global Investors with portfolios of holdings on every continent, McKinsey has importantly impacted the cost of capital for all corporations henceforth. Admittedly, McKinsey's criteria of "board governance" are blunt. "Every organization attempting to accomplish something has to ask and answer the following question," writes Harvard Business School professor Michael C. Jensen in the introduction to his recent working paper: "What are we trying to accomplish? Or, put even more simply: When all is said and done, how do we measure better versus worse? Even more simply: How do we keep score... . I say long-term market value to recognize that it is possible for markets not to know the full implications of a firm's policies until they begin to show up.... Value creation does not mean succumbing to the vagaries of the movements in a firm's values from day to day. The market is inevitably ignorant of many of our actions and opportunities, at least in the short run...". Surprisingly little attention is paid to what we all intuitively know, that talented people are not entirely motivated by financial compensation. Directors therefore must pay special attention to creating an appropriate environment for stimulating optimum management performance. [source] Corporate governance and corporate social responsibility: issues for AsiaCORPORATE SOCIAL RESPONSIBILITY AND ENVIRONMENTAL MANAGEMENT, Issue 1 2007Richard Welford Abstract An increasingly important aspect of CSR is the recognition that sound practices are often based on good standards of corporate governance. Good corporate governance provides the foundations of good CSR by creating value-creating relationships with all stakeholders. This article seeks to review corporate governance issues from an Asian perspective. Ownership and control of many companies in the region differ from those commonly seen in the West and there are therefore specific issues that need to be addressed in this context. It is argued that the fact that so many Asian companies are dominated by controlling shareholders (often families) means that corporate governance may have to be even stronger in the Asian region than elsewhere. Copyright © 2007 John Wiley & Sons, Ltd and ERP Environment. [source] The Emergence of Corporate Governance from Wall St. to Main St.: Outside Directors, Board Diversity, Earnings Management, and Managerial Incentives to Bear RiskFINANCIAL REVIEW, Issue 1 2003M. Andrew Fields Recent corporate events have brought a heightened public awareness to corporate governance issues. Much work has been accomplished to date, but it is clear that much more remains to be done. This paper provides a review of empirical research in four relevant areas of corporate governance. Specifically, the paper provides an overview of (a) the role that outside directors play in monitoring managers, (b) the emerging literature on the impact of board diversity, (c) the existence of and incentives for corporate executives to manage firm earnings, and (d) managerial incentives to bear risk. [source] Operationalizing governability: a case study of a Lake Malawi fisheryFISH AND FISHERIES, Issue 3 2010Andrew Moonseok Song Abstract Governability is seen as an adjustment process between governing needs and governing capacities. Understanding these two aspects and the interplay between them in a governance setting would pave a way for managing the pervasive difficulties confronting fisheries. In this study, we demonstrate how to operationalize the concept of governability by applying governability assessment framework to an inland fishery in the Southeast Arm of Lake Malawi. First, the needs and the demands of the natural and socio-economic aspects of the lake fishery system are examined according to four properties , diversity, complexity, dynamics and scale. Similarly, the capacities of the governing system are assessed. The characteristics of the governing interactions between these systems are next explored to provide a basis for improving governability. Assessment findings produce a systematic and holistic image of the fishery, and offer some insights into key governance issues and processes. In the Southeast Arm fishery, these include taking a close look at the internal, normative drivers of illegal fishing to ease the socio-economic complexity and streamlining the institutional structure to boost governing capacity. [source] Ownership Structure and Accounting Information Content: Evidence from FranceJOURNAL OF INTERNATIONAL FINANCIAL MANAGEMENT & ACCOUNTING, Issue 3 2007Ronald Zhao This paper investigates how family and bank ownership affect the accounting information content of French firms. In Continental Europe, the existence of block-holders triggers specific corporate governance issues, including the transparency of financial reporting. Our test results for the clean surplus model show that book value carries a significantly greater weight for family-controlled firms. This finding is attributed to their lack of incentive to report timely and relevant earnings to outside (minority) investors. In contrast, bank owners are under more market pressure to achieve earnings persistence through the use of accounting accruals. Bank ownership is also associated with higher levels of debt. These results are consistent with findings that in code law countries, insiders dominate as a source of finance, and financial reporting is aimed at creditor protection. [source] The impact of state governance structures on management and performance of public organizations: A study of higher education institutionsJOURNAL OF POLICY ANALYSIS AND MANAGEMENT, Issue 1 2004Jack H. Knott Legislative statutes are passed by political majorities which support structures that insulate the implementing agency from its political opponents over time. Political actors also respond to different constituencies. Depending on the broad or narrow base of these constituencies, actors favor different kinds of governance structures. We apply this theoretical framework to the question of whether the state governance structures of boards of higher education affect the way university managers allocate resources, develop sources of revenue, and promote research and undergraduate education. Over the past two decades state governments have given considerable attention to state governance issues, resulting in many universities operating in a more regulated setting today. This paper develops a classification of higher education structures and shows the effects of differences in these structures on university management and performance using a data set that covers the period from 1987 to 1998. The analysis suggests that, for most of the measures, productivity and resources are higher at universities with a statewide board that is more decentralized and has fewer regulatory powers. © 2004 by the Association for Public Policy Analysis and Management. [source] Best practices in board governance: Evidence from South CarolinaNONPROFIT MANAGEMENT & LEADERSHIP, Issue 2 2008Jo An M. Zimmermann In June 2003, a large-scale survey was conducted among South Carolina nonprofit agencies to gather information on a range of board governance issues. Some of the survey questions dealt with how each agency's board contributes to the organization. More than 80 percent of the responding agencies were registered as 501(c)(3), with the largest number of respondents in the human services category. Statistical analysis reveals where actual roles differ from "best practices" as prescribed in the literature. Discussion then focuses on how these trends in governance affect management and operations. In particular, we look at best practice regarding the separation of board and staff duties. [source] Governing by goals and numbers: A case study in the use of performance measurement to build state capacity in ChinaPUBLIC ADMINISTRATION & DEVELOPMENT, Issue 1 2009Jie Gao Abstract This article examines why performance measurement, a tool adopted by western countries chiefly to improve government services, has been designed and implemented as an instrument for building state capacity and for ensuring policy compliance in China. Under China's performance measurement system, the central government translates its macro reform goals into specific policy objectives, which it then assigns downwards through the administrative hierarchy. Local governments at the county level convert the policy objectives allocated to them into a variety of prioritised performance targets for local officials to achieve. Using the experience of an inland Chinese county as a case study, this article argues that performance measurement accrues significant political benefits to its users. It forces local Chinese officials to concentrate their efforts on realising the policy priorities set by the higher-level authorities. However, the way that performance measurement is conducted,governing by goals and numbers,does not address the substantial governance issues and fundamental social and political tensions that exist in Chinese society. Copyright © 2009 John Wiley & Sons, Ltd. [source] Sustainable governance of natural resources and institutional change,an analytical frameworkPUBLIC ADMINISTRATION & DEVELOPMENT, Issue 2 2007Anke Fischer Abstract This article presents a conceptual framework for analysing the governance of natural resource use, as governance is often the primary issue when natural resources are overexploited and degraded. It addresses both spontaneous and active governance, including institutional change induced by development co-operation. Drawing on existing frameworks of institutional analysis, fundamental modifications are presented to adapt the concept to the context of international co-operation, and to include dynamic aspects of institutional change as well as multiple actor interactions. Tested in several case studies, the framework was found suitable and relevant for use in project planning and evaluation, as well as for comparing governance issues across cases in a conceptually rigorous way. Copyright © 2007 John Wiley & Sons, Ltd. [source] Perspective: The Stage-Gate® Idea-to-Launch Process,Update, What's New, and NexGen Systems,THE JOURNAL OF PRODUCT INNOVATION MANAGEMENT, Issue 3 2008Robert G. Cooper Stage-Gate has become a popular system for driving new products to market, and the benefits of using such a robust idea-to-launch system have been well documented. However, there are many misconceptions and challenges in using Stage-Gate. First, Stage-Gate is briefly outlined, noting how the system should work and the structure of both stages and gates. Next, some of the misconceptions about Stage-Gate,it is not a linear process, nor is it a rigid system,are debunked, and explanations of what Stage-Gate is and is not are provided. The challenges faced in employing Stage-Gate are identified, including governance issues, overbureaucratizing the process, and misapplying cost-cutting systems such as Six Sigma and Lean Manufacturing to product innovation. Solutions are offered, including better governance methods such as "gates with teeth," clearly defined gatekeepers, and gatekeeper rules of engagement, as well as ways to deal with bureaucracy, including leaner gates. Next-generation versions of Stage-Gate are introduced, notably a scalable system (to handle many different types and sizes of projects), as well as even more flexible and adaptable versions of Stage-Gate achieved via spiral development and simultaneous execution. Additionally, Stage-Gate now incorporates better decision-making practices including scorecards, success criteria, self-managed gates, electronic and virtual gates, and integration with portfolio management. Improved accountability and continuous improvement are now built into Stage-Gate via a rigorous postlaunch review. Finally, progressive companies are reinventing Stage-Gate for use with "open innovation," whereas others are applying the principles of value stream analysis to yield a leaner version of Stage-Gate. [source] Poverty Reduction through Sustainable Fisheries: emerging policy and governance issues in South East Asia , Edited by Roehlano M. Briones and Arnulfo G. GarciaASIAN-PACIFIC ECONOMIC LITERATURE, Issue 1 2010Andy Thorpe No abstract is available for this article. [source] Democracy in Latin America: Issues of Governance in the Southern ConeBULLETIN OF LATIN AMERICAN RESEARCH, Issue 1 2004Laura Tedesco This article explores academic debates on transitions and democratic development, and outlines ideas relating to the governance issues considered by the papers in this special section. It presents a discussion of recent debates on democracy and transition in Latin America and concludes on the need to conceptualise the state in the region after the return to democracy. In so doing, it analyses issues of governance and highlights the role of the political class in building a democratic state. [source] | |||||||||||||